Total corporate funding in solar sector reaches $11.7 billion in 2019: Report

Our Bureau Mumbai | Updated on January 10, 2020 Published on January 10, 2020

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The global venture capital and private equity funding in the solar sector in 2019 came to $1.4 billion in 53 deals

The total corporate funding into global solar sector rose 20 per cent to $11.7 billion in 2019 from $9.7 billion raised in 2018, according to a study by Mercom Capital Group.

“Financial activity was up across the board in the solar sector in 2019 with venture funding, public market, and debt financing all increasing year-over-year. Solar equities also had a great year with six solar IPOs around the world. These notable metrics, along with robust debt financing activity including securitisation deals, rounded off a strong year for the sector,” said Raj Prabhu, CEO of Mercom Capital Group.

The global venture capital and private equity funding in the solar sector in 2019 came to $1.4 billion in 53 deals, compared with $1.3 billion in 65 transactions in 2018.

Of the $1.4 billion in VC/PE funding, $1 billion went to 30 Solar Downstream companies, which comprised 75 per cent of the total VC funding in 2019. Thin-film technology companies raised $126 million; PV companies raised $100 million; Balance of System (BOS) companies brought in $72 million; Solar Service Providers totaled $29 million; and Concentrated Solar Power (CSP) companies raised $7 million, followed by Manufacturing companies, which brought in $3 million.

The top solar VC/PE funded companies in 2019 were ReNew Power, which raised $300 million, Hero Future Energies with $150 million, followed by Avaada Energy with $144 million. Yellow Door Energy raised $65 million and Infinity Solar brought in $60 million.

There were 116 VC and PE investors that participated in funding deals in 2019, with 10 involved in multiple rounds.

Public market financing increased by 9 per cent in 2019, with $2.5 billion compared to the $2.3 billion raised in 2018. Initial Public Offerings (IPOs) were instrumental in higher public market funding activity in 2019, with $1.3 billion raised in six deals.

In 2019, announced debt financing rose 29 per cent with $7.8 billion in 46 deals, compared to $6 billion in 53 deals in 2018. There were five securitisation deals totaling $1.6 billion in 2019, which was the largest amount of financing through securitisation deals in the solar sector.

The top large-scale project funding deal was the $2 billion raised for the Noor Energy 1 Solar Project by Dubai Electricity and Water Authority (DEWA), ACWA Power and Silk Road Fund.

The top investors to fund large-scale projects in 2019 included Natixis, Banco Sabadell, ING, IFC, and NORD/LB.

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Published on January 10, 2020
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